After a knee-jerk reaction to tensions in the Middle East, gas prices fell an average of 7 cents across Tennessee to bring the Tennessee Gas Price average to $2.78. The average is 7 cents higher than on June 1, but well below the year-to-date high set in the spring of $2.80.
“AAA expects a record 1.5 million Tennesseans to take a road trip for the July 4th holiday,” said Stephanie Milani, AAA– The Auto Club Group Spokesperson. “With state gasoline prices an average of 33 cents less than this time last year, drivers will save an average of $6.00 per fill up.”
National Gas Prices
Since last Monday, the national average price for a gallon of regular gasoline has decreased by 4 cents to $3.18. Oil prices have returned to their pre-conflict levels.
According to new data from the Energy Information Administration (EIA), gasoline demand increased last week, rising from 9.29 million barrels per day to 9.68 million barrels per day. Meanwhile, the total supply of gasoline in the country dropped slightly, going from 230 million barrels to 227.9 million barrels. Gasoline production stayed the same, averaging 10.1 million barrels per day.
Oil Market Dynamics
At the close of last Wednesday’s formal trading session, WTI is up 55 cents to settle at $64.92 a barrel. The EIA reports that crude oil inventories decreased by 5.8 million barrels from the previous week. At 415.1 million barrels, U.S. crude oil inventories are about 11% below the five-year average for this time of year.
Tennessee Gas Price Averages
(Price per gallon of regular unleaded gasoline)
 | Monday | Sunday | Week Ago | Month Ago | One Year Ago |
| Tennessee | $2.78 | $2.78 | $2.85 | $2.72 | $3.11 |
| Chattanooga | $2.66 | $2.67 | $2.81 | $2.66 | $3.12 |
| Knoxville | $2.77 | $2.77 | $2.85 | $2.69 | $3.01 |
| Memphis | $2.83 | $2.83 | $2.86 | $2.74 | $3.08 |
| Nashville | $2.79 | $2.79 | $2.88 | $2.76 | $3.20 |
| Click here to view current gasoline price averages | |||||
Gas Price Survey Methodology
AAA updates fuel price averages daily at www.GasPrices.AAA.com. Every day up to 130,000 stations are surveyed based on credit card swipes and direct feeds in cooperation with the Oil Price Information Service (OPIS) and Wright Express for unmatched statistical reliability. All average retail prices in this report are for a gallon of regular, unleaded gasoline.